Freddie's Loan Volume is Up, Delinquency Rate Begins to Retreat

Freddie Mac reported this week that its total mortgage portfolio increased at an annualized rate of 17.5 percent in September compared to a 27.7 percent gain in August. The portfolio balance at the end of the period was $2.570 trillion compared to $2.533 trillion the prior month and $2.295 trillion a year earlier. The growth rate for the year to date is 13.7 percent.

Purchases and Issuances totaled $114.386 billion and Sales were ($3.064) billion. The August numbers were $131.140 billion and ($898) billion, respectively.

Single-family refinance loan purchase and guarantee volume was $70.9 billion in September compared to $87.200  billion in August, representing a 69 percent share of total single-family mortgage portfolio purchases and issuances compared to 70 percent the previous month.

Purchases in Freddie Mac's Mortgage Related Investments Portfolio totaled $93.820 billion for the month compared to $94.753 billion during the prior period. Liquidations were ($2.347) billion and ($2.405) billion for September and August respectively and Sales for the two periods were ($89.529) and ($89.432) billion. The ending balance in the portfolio was $198.176 billion, compared to $196.232 billion in August and $221.601 billion in September 2019.

The Mortgage Related Investments portfolio grew 11.4 percent compared to growth of 18.1 percent a month earlier. The annualized growth in September 2019 was 16.3 percent.

The ending balance of the Mortgage Related Investments Portfolio was composed of $87.212 billion in Mortgage Related Securities, Mortgage Loans valued at $105.378 billion, Non-Agency, non-Freddie Mac Mortgage-Related Securities at $1.470 billion; and Agency non-Freddie Mac Mortgage related securities of $4.116 billion. Mortgage related securities and other guarantee commitments increased at an annualized rate of 18.6 in September compared to 23.8 percent in August.  

Freddie Mac's single-family delinquency rate decreased from 3.17 percent in August to 3.04 percent in September. The multi-family delinquency rate was unchanged at .13 percent.    

Freddie Mac said the measure of its exposure to changes in portfolio value averaged $103 million in September compared to $134 million in August.